Do CEOs Matter? Evidence from Hospitalization Events
Publikation: Bidrag til tidsskrift › Tidsskriftartikel › Forskning › fagfællebedømt
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Do CEOs Matter? Evidence from Hospitalization Events. / Bennedsen, Morten; Pérez-González, Francisco; Wolfenzon, Daniel.
I: The Journal of Finance, Bind 75, Nr. 4, 01.08.2020, s. 1877-1911.Publikation: Bidrag til tidsskrift › Tidsskriftartikel › Forskning › fagfællebedømt
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TY - JOUR
T1 - Do CEOs Matter? Evidence from Hospitalization Events
AU - Bennedsen, Morten
AU - Pérez-González, Francisco
AU - Wolfenzon, Daniel
PY - 2020/8/1
Y1 - 2020/8/1
N2 - Using variation in firms’ exposure to their CEOs resulting from hospitalization, we estimate the effect of chief executive officers (CEOs) on firm policies, holding firm-CEO matches constant. We document three main findings. First, CEOs have a significant effect on profitability and investment. Second, CEO effects are larger for younger CEOs, in growing and family-controlled firms, and in human-capital-intensive industries. Third, CEOs are unique: the hospitalization of other senior executives does not have similar effects on the performance. Overall, our findings demonstrate that CEOs are a key driver of firm performance, which suggests that CEO contingency plans are valuable.
AB - Using variation in firms’ exposure to their CEOs resulting from hospitalization, we estimate the effect of chief executive officers (CEOs) on firm policies, holding firm-CEO matches constant. We document three main findings. First, CEOs have a significant effect on profitability and investment. Second, CEO effects are larger for younger CEOs, in growing and family-controlled firms, and in human-capital-intensive industries. Third, CEOs are unique: the hospitalization of other senior executives does not have similar effects on the performance. Overall, our findings demonstrate that CEOs are a key driver of firm performance, which suggests that CEO contingency plans are valuable.
U2 - 10.1111/jofi.12897
DO - 10.1111/jofi.12897
M3 - Journal article
AN - SCOPUS:85081982241
VL - 75
SP - 1877
EP - 1911
JO - The Journal of Finance
JF - The Journal of Finance
SN - 0022-1082
IS - 4
ER -
ID: 249250728